Anyone here wants to speculate on when will the property prices be rising again? By the way, property prices did NOT go down for the past few quarters even with lower transactions, slower market, negative sentiments and that political uncertainty which has at least passed by peacefully. Here’s that earlier article right after the GE. As for property prices, do refer to the chart from housingwatch.my with data from National Property Information Centre (NAPIC). Yes, this is just an average number, so perhaps the house prices in your area has gone down while prices in some other areas have gone up. Now that we understand that property prices did not actually went down despite the property market slowing down since 2013, then do we want to know when will prices REALLY rise? I think this meant that the property prices should be increasing faster than current percentage? Personally, I am okay with 5 percent every year. 😛
According to global property consultancy firm Savills (Malaysia) Sdn Bhd, it expects domestic property prices to increase in the second half of next year. Its chief executive officer Datuk Christopher Boyd said that they expected this because of the growth in Malaysia’s socio-economic standing. He said, “There is still an issue of oversupply, especially within the domestic property market. The uncertainties brought on by trade tensions between the United States and China also play a role for investors’ shying away from Malaysia now.” As for the uncertainties from the wait-and-see approach before the GE14, he said that when all these factors go away, property prices will increase again. He added, “We are expecting that prices will rise again in the second half of 2019 after all the uncertainties have died down.” He then said something which many have recently shared. “The reintroduction of the Sales and Services Tax in September will also play a part in the price increase as raw materials will again be taxed and, therefore, will become more expensive.” Please do refer to the full article in NST here.
Actually, what Datuk Christopher is sharing can also be explained in that as long as everyone has a job which pays them increments every year, they will have the confidence to make that decision to buy or to upgrade. Usually the upgrading part meant that they are buying a higher priced property and thus increasing the average property prices being transacted. He had also reconfirmed that when costs go up, the property prices would also inch upwards. Anyway, everyone working in the real estate industry will also need increments, bonuses and incentives yeah. This is why property prices cannot be decreasing every year, unless all the workers are replaced by robots for example. Since he is from Savills (Malaysia), it meant that he has the information from all the other Savills offices around the world, especially those from the advanced markets. The trend is not hard to see because the property market in Malaysia is lagging behind all these far more advanced markets. Oh yeah, property price increase does not mean we have become rich. It remains a natural hedge against inflation, keeping us from becoming poorer, perhaps. Happy believing.
written on 16th July 2018
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